_MG_1858-r(Rent or Buy) copyI bet you’ve heard this before: “Renting is like throwing money away!”

Well, I couldn’t disagree more. That’s like saying that you are throwing money away buying food because when you eat it, it’s gone. Guess what? There are costs to living. And that includes the roof over your head.

Throughout my book tour, I’ve heard women talking about buying a home like it’s the American Dream. Well, maybe it was, once—but today’s job market and mobile culture demand more flexibility for many people, and buying a home can be a recipe for getting yourself financially and physically stuck.

Buying a home is the biggest money decision you will ever make. Don’t take it lightly, and remember that it’s not about playing house. Buying a house you can’t afford can sink you into financial prison, no matter how nice it is.

Now, homeownership can be the right thing for you, after all. Just know, though, that nothing in finance is one-size-fits all, especially when it comes to buying versus renting your home. If you’re unsure, here’s a quick quiz to know if buying is the right move for you.

Even if you aced the quiz, there’s still more to consider. Wait, there’s more? Well, yes—as with most big purchases, there are some sneaky costs associated with home buying that most people forget to factor in. Beyond having money for the house itself (whichever way you go on the down payment), you have to prepare the closing costs. These are approximately 3% of the overall purchase price…which can be as much as $10,000 on a $350,000 house in JUST closing costs on top of the down payment.

I’m not saying this to scare you; it’s just another major area in which I want you to rethink conventional financial wisdom, and make the decision for yourself and your particular situation. Whether it’s a house, an apartment, hey, even a yurt—happy hunting!

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By | 2017-01-23T08:55:04+00:00 April 6th, 2015|Nicole's Note|0 Comments